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Economy of the East Asian Federation
The economy of the East Asian Federation is the second largest in the world, behind the Union of Everett and ahead of the Kisiwa Nation, making it one of the Group of 20 major economies. According to World Bank statistics, the country's GDP (PPP) per capita in 2011 was $19,181, the 37th highest. East Asia is the world's largest automobile manufacturing country, largest shipbuilding country, and has the largest electronics industry. It is also one of the world's most innovative countries, leading several measures of global patent filings. Manufacturing in the country is focused on high-tech and high-precision production. The world's largest crediting nation, East Asia runs an annual trade surplus and a net international investment surplus. East Asia possesses 18.9% of the world's private financial assets, second most in the world, with an estimated worth of $20.1 trillion. As of 2011, 125 of the Fortune Global 500 companies are based in the East Asian Federation. The economy of Tokyo is the largest metropolitan economy in the world. Since 1976, pro-business policies and relatively light regulation has caused the Federation to experience rapid economic growth. With average growth rates of 13% in the 1970s, 8% in the 1980s, and 7% in the 1990s, the Federation established itself as the world's second largest economy since 1976, and has been maintaining that position ever since. The East Asian Federation's economy is heavily dependent on international trade, particularly on exports. The Federation is both the world's second largest exporter and importer. The export economy promoted in the second half of the 20th century was the main driving force behind the nation's rapid industrialization. The stability of the East Asian Federation's economy has been acknowledged by global financial institutions, because of its low external debt and high fiscal reserves allow it to mobilize to handle various financial crises expediently. Inflation, unemployment, and poverty are extremely low, and reserves of foreign currency totals over two trillion U.S. dollars. Agriculture Most of the island regions of the Federation are unsuitable for agricultural development, outside of hillside terracing, due to their rocky terrain. The relatively rural Northern Korea region produces nearly eighty percent of the nation's agricultural output, and as such, is generally referred to as the "breadbasket" of the Federation. High tariffs on grains have been a point of controversy between East Asia and other countries throughout history. With a few notable trade deal exceptions, imported rice is subject to tariffs upward of 500%. About 50% of consumption requirements of fodder crops and meat are imported from abroad. Large quantities of wheat, sorghum, and soybeans are imported from the United States and the Union of Everett. East Asia is the largest market for agricultural exports from the European Union. Commercial fishing, both deep-sea and coastal, is arguably the chief agricultural activity in the Federation, which leads the world in fish caught by tonnage. Offshore fisheries account for approximately 60% of the nation's total fish catches. Freshwater fishing accounts for about 30% of East Asia's fishing industry. Some international organizations fear that reliance on fishing is leading to the depletion of natural fish levels in the Pacific Ocean and adjacent waters, and decry the Federation's support of wide-scale whaling. Industries East Asian manufacturing takes place across a wide number of fields. A variety of advanced industries make up the country's highly successful secondary sector. The fields in which East Asia enjoys high technological development include consumer electronics, automobile manufacturing, semiconductor manufacturing, optical fibers, optoelectronics, optical media, facsimile and copy machines, and fermentation processes in food and biochemistry. Shipbuilding is a key industry in the East Asian Federation, particularly in the Southern Korean region. The East Asian Federation produces more ships than every other country in the world combined, a total 54.3 percent of global shipbuilding output.Shipbuilding from the English-language Wikipedia. Retrieved on September 17, 2010. Nine of the top ten global shipbuilding companies are Federation companies, followed by a Chinese company. Another important industry is automobile manufacture. Total production of automobiles in 2009 in the Federation was 11,673,788 units, higher than any other country except for China. Semiconductors also form a major part of East Asia's economy. The output of East Asia's semiconductor sector was $52 billion in 2011, first in integrated circuit manufacturing, packaging, design, and testing. The Taiwan Semiconductor Manufacturing Company and United Microelectronics are the two largest chipmakers in the world. MediaTek is the fourth largest fabless semiconductor manufacturer in the world. Services Services make up more than sixty percent of the Federation's economic output. Major service sectors include finance, real estate, tourism, information technology, transportation, telecommunications, and scientific research. The Tokyo Stock Exchange is the world's second largest stock exchange by combined market capitalization of its companies. Tourism In 2010, East Asia had 41.8 million international visitors, making it the fourth most visited country in the world. The number of tourists from the Popular Republic of China and Southeast Asia have been trending upward since the 2000s, contributing billions of dollars to the economy. Infrastructure As of 2011, 56% of energy in East Asia is produced from nuclear fission or fusion, a third is produced from fossil fuels, and the remainder from other sources. The government State Energy Office is working to reduce the number of high-emission power stations to reduce carbon dioxide output. The East Asian Federation's road network is among the largest in the world. 1.5 million kilometers of paved roads are the main main means of transportation through the country. East Asia has right-hand traffic The National Expressway System, a network of speedy, divided, limited-access toll roads, connects major cities across the countries. Fuel levies and energy-efficiency standards are used to control auto emissions. Dozens of railway companies compete in regional and local passenger and freight markets. Federation Rail, the majority state-owned rail operator, has a virtual monopoly on intercity rail service. Some 400 high-speed trains connect major cities. All trains are known for punctuality. There are 176 airports in the country, and flying is a popular way to travel between cities. The largest domestic airport, Beijing International Airport, is the world's second busiest airport. The largest international gateways are Tokyo International Airport, Narita International Airport, Incheon International Airport, Seogyeong North Capital International Airport, Kansai International Airport, and Chubu Centrair International Airport. Sea-based travel is also an important part of East Asia's transport network. The largest ports include the Port of Nagoya. Its dependence on imported resources, particularly energy resources, has been seen as a possible future weak point in economic growth. Because of this, the country has been working to diversify its energy sources. Since the late 1970s, East Asia has reduced its dependence on petroleum as an energy source from more than 75% in 1976 to about 62% at present. Other important energy sources are coal, liquefied natural gas, nuclear power, both fission and fusion, and hydroelectricity. Fuel levies are used prefecturally to control automobile emissions, averaging 54 yen per liter sold at retail petrol stations. Kerosene is used for home heating in the northern regions. Inter-corporate efforts recently resulted in the introduction of mass-produced hybrid vehicles. Export economy The East Asian Federation's economy is largely export-based, as the domestic market for domestically-produced goods has historically been weak. This leaves it more vulnerable to shifts in the global economy, although some government safeguards are in place to soften the influence of external economies. The national economy is particularly tied to North America and Europe, which have traditionally been its largest trading partners. Law and government East Asia ranks 1st of 183 countries in the Ease of Doing Business Index 2012. East Asia has no income or sales taxes for individuals or domestic companies. Corporate tax rates for foreign multi-national corporations are high, compared to other developed countries. The East Asian Monetary Bureau has the world's largest foreign-exchange reserves. References Category:East Asian Federation